Inheritance Law Reform, Empowerment, and Human Capital Accumulation: Second-Generation Effects from India - Working Paper

Policy effects across generations are sometimes difficult to measure, however "Inheritance Law Reform, Empowerment, and Human Capital Accumulation: Second-Generation Effects from India" by Deininger et al. does offer an interesting example.

Abstract:     

"This paper uses evidence from three Indian states, one of which amended inheritance legislation in 1994, to assess first- and second-generation effects of inheritance reform using a triple-difference strategy. Second-generation effects on education, time use, and health are larger and more significant than first-generation effects even controlling for mothers' endowments. Improved access to bank accounts and sanitation as well as lower fertility in the parent generation suggest that inheritance reform empowered females in a sustainable way, a notion supported by significantly higher female survival rates."

Inheritance Law is inter-generational by definition (unless it has a strong bias towards widows, but then it becomes a question of patience). India, with its different speed of adoption of the law, allows for a interesting natural experiment, that the authors take a step further by measuring impact on second generation. The study finds large effects on multiple variables, probably due to an increased intra-household bargaining power by women (first generation) that benefit their offspring (second generation). While there are potential indicators for sexual selection (the cost of a female born increases), the survival rates and welfare effects on daughters are noticeable.

The fact that second generation effects are not only measurable but also large, should lead to a rethink on how to time and expect results from such policies. This further adds to the female empowerment literature, the potential for sustained change through policy reform and its welfare related effects.